1 - 29 | |||
| 1 | L18 | absolute advantage | benefit of one nation over others that allows it to manufacture more output because it has a particular resource or commodity in greater quantity than the other countries |
| 2 | L15 | accounting cost | the cost, expressed in units of money, of making or obtaining goods or services |
| 3 | L15 | accounting profit | the difference between a firm’s total revenue and its explicit (accountant) costs |
| 4 | L16 | accounts payable | unpaid bills of a company to its customers |
| 5 | L16 | accounts receivable | the sums owed to a firm by its customers |
| 6 | L20 | actual growth | the percentage annual increase in actual national output |
| 7 | L19 | ad valorem tariff | a tax on the imported products calculated as a percentage of the value of the product |
| 8 | L25 | advances | money provided by a bank to companies and to private persons in the form of loans and overdrafts |
| 9 | L8 | after-tax income | net income after deducing taxes |
| 10 | L2 | aggregate price level | a measure of the average level of prices of goods and services in the economy |
| 11 | L7 | antimonopoly law | a law that seeks to control market structure and the competitive behaviour of firms |
| 12 | L13 | arc elasticity | the average elasticity of a range of points on a demand curve |
| 13 | L6 | asset | anything of monetary value owned by a firm or individual |
| 14 | L25 | asset demand (for money) | the desire to hold money as one of many kinds of financial assets, negatively related to the interest rate |
| 15 | L16 | assets | anything of value to which a firm holds a legal claim |
| 16 | L6 | auction | a method of selling in public by letting intended buyers compete with each other by making bids (offers of money) |
| 17 | L15 | average cost | the cost per unit of a output cost |
| 18 | L18 | balance of payments | a summary of all the transactions which took place between the individuals, firms, and government unit of one nation and those in all other nations during a year |
| 19 | L18 | balance of trade | the exports of goods of a nation less its imports of goods |
| 20 | L16 | balance sheet | a financial statement summarising what a firm owns and what it owes at a given point in time |
| 21 | L25 | bank deposits multiplier | the ratio of potential change in the money supply to an initial change in excess reserves |
| 22 | L7 | barriers to entry | anything that prevents the entry of new firms into an industry |
| 23 | L5 | barter | direct exchange of one good or service for another good or service |
| 24 | L24 | barter | the system of exchanging goods for other goods rather than for money |
| 25 | L3 | batch production | a system of production where a number of similar products are produced to meet continuing sales demand |
| 26 | L6 | bear market | the market for securities where speculators sell shares because they expect a fall in their prices |
| 27 | L26 | bill of exchange | a signed document, such as a cheque, that orders a person or an organization, such as a bank, to pay a fixed sum of money on demand or on a certain date to the person specified |
| 28 | L6 | black market | illegal trading in goods and services that are scare, either because supplies are officially rationed or forbidden, or because prices are controlled by government order |
| 29 | L14 | board of Directors | "a group of persons elected by the members (shareholders) of a company to carry on the management of the company, often called simply ""the board""" |
30 - 59 | |||
| 30 | L7 | bond | a form of fixed-interest security issued by central or local governments, companies, banks or other institutions through which a borrower is obligated to pay the principal and interest on a loan at a specific date in the future |
| 31 | L1 | boom | in the business a very high peak representing a big jump in output |
| 32 | L25 | broad money | a definition of money including financial assets which are relatively liquid, but not as liquid as narrow money items. A financial asset which would be regarded as broad money, but broad money extends the range of assets which are regarded as money |
| 33 | L8 | budget | an estimate of income and expenditure for a future period |
| 34 | L12 | budget line | a schedule or a curve that shows various combinations of two products a consumer can purchase with a specific money income |
| 35 | L6 | bull market | the market for securities where brokers speculate on a rise in their prices |
| 36 | L26 | bullion | gold of silver in the form of bars not coins |
| 37 | L20 | business cycle | the regular patterns of booms and recessions in aggregate economic activity |
| 38 | L3 | by-product | the output from a process designed for the production of some other product |
| 39 | L1 | capital | human-made resources (buildings, machinery, and equipment) used to produce goods and services |
| 40 | L18 | capital account | the part of the balance of payments statement that lists all long-term flows of payments from the purchase or sale of real or financial assets |
| 41 | L6 | capital market | the market with long-term loans and securities as distinct from the money market, which deals in short-term loans |
| 42 | L24 | cash | money in the form of coins and notes |
| 43 | L16 | cash-flow statement | a financial statement summarizing net cash flow from operating, investing, and financing activities |
| 44 | L28 | central bank | a state-owned bank which controls the amount of money available and the general banking systems in a country, and influences interest rates |
| 45 | L9 | centrally planned economy | an economic system in which resources are publicly owned and government uses central planning to direct and coordinate economic activities |
| 46 | L27 | certificate of deposit | a transferable document issued by a bank as evidence that a large sum of money has been lent to the bank for a fixed period of time |
| 47 | L5 | circular flow | the flow of goods and services between households and firms balanced by the flow of payments made in exchange for them |
| 48 | L26 | clearing system | a process by which cheques and other payments are passed through the banking system until the transactions are completed |
| 49 | L14 | co-operative | a business organisation owned and run by a society of persons or of groups of persons whose aim is not to make a profit but to give benefits to the members |
| 50 | L9 | command economy | an economic system in which resources are publicly owned and government uses central planning to direct and coordinate economic activities |
| 51 | L26 | commercial bank | a financial intermediary with a government licence to make loans and issue deposits |
| 52 | L26 | commission | a payment to someone for providing a service or a good, usually a percentage of the total value of the deal |
| 53 | L9 | commodity | An article of trade resulting from the process of production / A primary product |
| 54 | L6 | commodity market | a market in which commodities (esp. food and raw materials) are bought and sold |
| 55 | L24 | commodity money | money that has value as a commodity as well as in its role as money, such as precious metals, cows, tobacco, or other tangible goods |
| 56 | L19 | common market | association of trading countries with all characteristics of a customs union and with a common system of taxation, common trade laws and free movement of labour, capital, and goods and services |
| 57 | L18 | comparative advantage | the ability to produce a good at a lower opportunity cost than another country can |
| 58 | L7 | competition | the presence in a market of a large number of independent buyers and sellers competing with one another and their freedom to enter and leave the market |
| 59 | L10 | complement | a good that is used in conjunction with another good |
60 - 89 | |||
| 60 | L12 | concave curve | a curve which curves inwards |
| 61 | L2 | consumer price index | an index which measures prices of a fixed market basket of goods and services purchased by a typical urban household |
| 62 | L21 | consumer price index | index expressing the average of the prices of various goods and services commonly purchased by families in urban areas |
| 63 | L5 | consumption expenditure | the income households spend on firm's output |
| 64 | L12 | convex curve | a curve which curves outwards |
| 65 | L5 | corporation | a firm that takes the form of an independent legal entity with ownership divided into equal shares and owners liability limited to his/her investment in the firm |
| 66 | L8 | corporation tax | a tax levied on the profits of companies |
| 67 | L1 | cost | the amount of money paid or needed for buying, doing or producing something |
| 68 | L23 | cost-push inflation | inflation, that occurs when restrictions are placed on the supply of factor inputs, or, when the prices of those inputs are increased |
| 69 | L26 | credit | an arrangement where goods and services can be received now and paid for later, within an agreed period |
| 70 | L24 | credit card | a plastic card which is used instead of money to pay for goods and services. The cost is charged to one's account and paid later |
| 71 | L25 | credit multiplier | the ratio of potential change in the money supply to an initial change in excess reserves |
| 72 | L23 | creeping inflation | single-digit inflation |
| 73 | L5 | currency | notes and coins that are the medium of exchange in a country |
| 74 | L24 | currency | any kind of money that is in general use as cash, passing from person to person, such as coins and banknotes / the money of a particular country |
| 75 | L18 | current account | the part of the balance of payments statement that lists currently produced goods and services and represents all short-term flows of payment |
| 76 | L24 | current account | a bank account which usually earns little or no interest and from which money can be taken out at any time by cheque |
| 77 | L16 | current assets | cash or other assets that will be turned into cash or used up in one year though the operation of the business |
| 78 | L16 | current liabilities | amounts owed in dollars (or other currencies) or services due within one year |
| 79 | L8 | customs duty | a tax that must be paid when particular goods are imported into a country |
| 80 | L19 | customs union | association of trading countries whose members apart from removing tariffs and quotas between themselves adopt common external trade policy with non-member countries |
| 81 | L22 | cyclical unemployment | unemployment resulting from fluctuations in economic activity |
| 82 | L24 | debit card | a plastic card which is used instead of money to pay for goods and services. The cost is taken directly from the user's bank account. Debit cards can also be used to obtain money from cash dispensers |
| 83 | L23 | deflation | general decrease in prices |
| 84 | L5 | demand | the amount of a good that buyers are willing to buy at every price at a particular time and place |
| 85 | L10 | demand | the amount of a good buyers wish to purchase at each conceivable price |
| 86 | L10 | demand curve | a curve which graphs the relationship between the quantity demanded of a good and its price |
| 87 | L23 | demand-pull inflation | inflation that occurs when total planned spending increases faster than total output, i.e. when too much money is chasing too few goods |
| 88 | L27 | deposit account | money invested in a bank account that pays interest and for which the bank needs a notice in advance if the money is to be taken out |
| 89 | L20 | depression | a severe contraction characterised by unemployment rate higher than 12% for more than one year |
90 - 119 | |||
| 90 | L28 | discount rate | the rate of interest charged by a central bank to commercial banks that borrow from it |
| 91 | L5 | dividend | the part of a company's profits payable to shareholders |
| 92 | L16 | double-entry bookkeeping | a system of recordings business transactions by debits and credits that are of equal dollar (or other currency) amounts |
| 93 | L19 | dumping | selling merchandise or services at a much lower price than justified, sometimes even below the price to produce product or render the service |
| 94 | L21 | durable goods | items that will last for more than tree years with normal usage |
| 95 | L19 | economic and monetary union | association of trading countries with all characteristics of a common market and with fixed rate between the members |
| 96 | L15 | economic cost | all opportunity costs of producing a good with scare resources, whether money payments are made for these resources or not |
| 97 | L1 | economic good | a good or service that is both useful and scarce and therefore has a price |
| 98 | L2 | economic growth | an outward shift of the production possibility frontier brought about by an increase in available resources and/or technological improvement |
| 99 | L20 | economic growth | the increase in the economy's potential (full employment) national income |
| 100 | L4 | economic loss | the financial harm or disadvantage in business |
| 101 | L15 | economic profit | the difference between total revenue and economic costs for a firm (also called pure profit) |
| 102 | L1 | economics | the study of how people use their limited resources to satisfy unlimited wants |
| 103 | L1 | economies of scale | a decrease in per-unit cost as a result of an increase in output |
| 104 | L1 | economy | an organized system of the production, distribution and consumption of wealth |
| 105 | L4 | efficiency | achieving as much output as possible from a given amount of inputs or resources |
| 106 | L4 | efficient points | points lying on the production possibility frontier, representing maximum combinations of outputs that can be produced in a given tine period with all available resources and technology |
| 107 | L13 | elastic demand | the percentage change in quantity demanded is greater than the percentage change in price |
| 108 | L19 | embargo | an official ban on trade with another country |
| 109 | L1 | enterprise | the quality in a businessman to organise, innovate, bear risks and make nonroutine decisions / an industrial or commercial organization / an economic syst |
| 110 | L11 | equilibrium | the situation when quantity demanded equals quantity supplied |
| 111 | L6 | equilibrium price | the price at which the quantity demanded equals the quantity supplied |
| 112 | L11 | equilibrium price | the price at which quantity demanded equals quantity supplied |
| 113 | L11 | equilibrium quantity | the quantity at which quantity demanded equals quantity supplied |
| 114 | L28 | excess reserves | reserves held by banks in excess of the amounts required by law that are available to lend |
| 115 | L8 | excise tax | sales tax levied on a particular good or service |
| 116 | L5 | expenditure | the amount of money spent |
| 117 | L15 | explicit costs | the cost, expressed in units of money, of making or obtaining goods or services |
| 118 | L8 | externality | an activity that affects others for better or worse, without those others paying or being compensated for the activity |
| 119 | L5 | factor services | services of productive resources (land, labour, capital, enterprise) which households sell or rent to businesses |
120 - 149 | |||
| 120 | L6 | factors of production | resources, or inputs, necessary to produce goods and services |
| 121 | L8 | family allowances | money paid regularly by the government to families with children |
| 122 | L24 | fiat money | paper money or coins of little or no intrinsic (material) value in themselves, that is, accepted as money only because the government declares it to be money |
| 123 | L21 | final goods | goods purchased for final use by the purchaser |
| 124 | L3 | final product | a good or service that is not used as an input in the production of other goods and services but is bought by its final user |
| 125 | L26 | financial intermediary | middlemen who bring borrowers and lenders together goods |
| 126 | L3 | finished good | a manufactured product which is ready to be sold |
| 127 | L15 | fixed costs | expenses which do not vary with the volume of goods produced |
| 128 | L18 | fixed exchange-rate | exchange rate fixed at a predetermined level |
| 129 | L18 | floating exchange-rate | a flexible exchange rate fluctuating according to market forces without any government interventions |
| 130 | L27 | foreign currency account | a bank account kept in a foreign currency |
| 131 | L6 | foreign exchange market | the market in which the currency of one country is exchanged for the currency of another |
| 132 | L14 | franchise | an agreement by which a monopoly producer (the franchisor) gives another producer or trader (the franchisee) by formal licence the exclusive right to manufacture or sell the products of the franchisor in a certain area |
| 133 | L1 | free good | a commodity that has no price because it is not scarce and does not require the use of scarce factors of production to create them, e.g. Fresh air, sunshine (in certain parts of the world) |
| 134 | L9 | free market economy | an economic system without any government intervention where all resources are owned by private individuals and economic decisions are made according to the forces of supply and demand |
| 135 | L19 | free trade area | association of trading countries whose members remove tariffs and quotas between themselves but retain their restrictions towards non-member countries |
| 136 | L22 | frictional unemployment | unemployment caused by new entrants to the job market and people who have left their job to look for and find other jobs |
| 137 | L16 | gain and loss account | a financial statement summarizing a firm |
| 138 | L23 | galloping inflation | double or triple-digit inflation |
| 139 | L21 | GDP per capita | GDP per person (= per head) |
| 140 | L27 | giro account | a type of a current account used mainly by employees |
| 141 | L21 | GNP deflator | index expressing the weighted average of the prices of all gods and services creating the total output of the economy |
| 142 | L21 | gross domestic product | total market value of all final goods and services produced by factors of production located in the domestic economy over a twelve-month period |
| 143 | L21 | gross national product | aggregate final output of citizens and businesses of a country over a twelve-month period |
| 144 | L16 | gross profit | revenue minus cost of sales |
| 145 | L18 | hedging | buying a commodity, share or other investment at a fixed price for future delivery to protect oneself against loss caused by a possible change in price |
| 146 | L23 | hyperinflation | inflation of four or more digits |
| 147 | L24 | check | a special printed form filled in and signed by a person (the drawer) asking a bank (the drawee) to pay a sum of money to someone (the payee) |
| 148 | L27 | checking account | a bank account which usually earns little or no interest and from which money can be taken out at any time by cheque |
| 149 | L24 | cheque | a special printed form filled in and signed by a person (the drawer) asking a bank (the drawee) to pay a sum of money to someone (the payee) |
150 - 179 | |||
| 150 | L7 | imperfect competition | a state of competition in a market in which buyers and sellers have imperfect knowledge of the market and there is a lack of freedom of movement of factors of production from one industry to another |
| 151 | L15 | implicit costs | the forgone benefits or alternative uses for productive resources that are owned by the producer and for which no direct, monetary payments are made |
| 152 | L1 | incentive | something that motivates people to action or effort |
| 153 | L5 | income | the amount received by households in payment for the services of factors of production |
| 154 | L16 | Income statement | a financial statement summarizing a firm |
| 155 | L12 | indifference curve | a curve that shows all combinations of two products which bring the same utility to the consumer |
| 156 | L12 | indifference map | shows a system of indifference curves |
| 157 | L8 | individual income tax | a tax paid by citizens to the government usually as a percentage of their incomes |
| 158 | L3 | industry | production of goods especially in factories / a particular branch of production or trade |
| 159 | L4 | inefficient points | points lying inside (below) the production possibility frontier, representing the complete use of the available resources |
| 160 | L13 | inelastic demand | the percentage change in quantity demanded is lower than the percentage change in price |
| 161 | L19 | infant industry | a new or undeveloped industry that may be able to survive the initial period because of strong foreign competition |
| 162 | L10 | inferior good | a good whose consumption decreases when income increases |
| 163 | L1 | inflation | a continual rise in the average level of prices |
| 164 | L23 | inflation | a general continuous increase in the average level of prices of goods and services in the economy |
| 165 | L23 | inflationary spiral | gradual intensification of inflation |
| 166 | L1 | input | the factors of production that are put into a business to produce its output |
| 167 | L26 | instalment | one of a series of payments, usually as a means of buying goods |
| 168 | L26 | insurance company | a financial institutions that provides insurance |
| 169 | L16 | intangible assets | assets not having physical existence (goodwill, licence, trademark, etc.) |
| 170 | L6 | interest | the price paid for the use of money such as by a borrower to a lender of money |
| 171 | L26 | interest | an amount charged for money borrowed |
| 172 | L2 | interest rate | the relation between a the payment received by a lender of money and the amount of money lent, expressed as a percentage |
| 173 | L26 | interest rate | the cost of borrowing money expressed as a percentage of the capital borrowed |
| 174 | L21 | intermediate goods | goods used up in the production process, i.e. used as input for other production process |
| 175 | L16 | Inventories | products a firm has for sale |
| 176 | L26 | investment bank | a bank that provides finance for companies, esp. by buying stocks and securities and selling them in smaller units to the public |
| 177 | L24 | IOU | "I owe you" / a piece of paper saying that one owes a certain amount of money to someone, signed and dated, forming a simple acknowledgement of a debt" |
| 178 | L3 | jobbing production | a system of production where each order is for a different product |
| 179 | L14 | joint stock company | a form of business organisation which has its capital divided into many small units of stock or into shares so that they may be bought by small or large investors |
180 - 209 | |||
| 180 | L17 | labour | Work, esp. Human work needing the use of strength of body or skill and effort of mind / The whole class of persons who wok for their living / One of the main factors of production, the human energy and mental skill and judgement applied in producing economic goods |
| 181 | L17 | labour | the work and time for which employees are paid |
| 182 | L22 | labour force | all people of working age, both employed and unemployed |
| 183 | L6 | labour market | the market for the services of workers |
| 184 | L17 | labour market | factor market in which individuals supply labour services for wages to firms that demand labour services |
| 185 | L1 | land | "one of the factors of production, also called ""natural resources"" being the gifts of nature in form of useful materials of all minerals, water, winds and weather" |
| 186 | L15 | law of diminishing returns | a basic law of economics stating that if, in the production of a commodity, one factor of production is increased by stages while the other factors are kept unchanged, the stage will sooner or later be reached where each further addition to the increasing factor will produce smaller and smaller increase in output |
| 187 | L14 | legal entity | a person or group of persons recognised by law as having a separate legal existence with his or its own rights and duties |
| 188 | L24 | legal tender | any form of money which by law must be accepted when offered in payment |
| 189 | L26 | letter of credit | a letter from one bank to another bank, by which a third party, usually a customer, is able to obtain money |
| 190 | L16 | Liabilities | all the legal claims that non-owners hold against a particular firm |
| 191 | L14 | limited company | a form of business organisation which has its capital divided into many small units of stock or into shares so that they may be bought by small or large investors |
| 192 | L14 | limited liability | the fact that the losses of owners of the business are limited to the value of their investment |
| 193 | L24 | liquidity | the ease and speed with which an asset can be converted into a medium of exchange |
| 194 | L5 | loan | something lent, esp. Money on condition that interest will be paid at an agreed rate and that the amount lent will be repaid at an agreed time and in an agreed manner |
| 195 | L2 | macroeconomics | the branch of economics that examines and explains the economy as a whole, i.e. in aggregate values |
| 196 | L15 | marginal costs | the extra cost of increasing the output by one more unit |
| 197 | L12 | marginal rate of substitution | the amount of one good the consumer must sacrifice to increase the quantity of the other good by one unit without changing the total utility |
| 198 | L17 | marginal revenue product | the change in total revenue associated with one additional unit of output |
| 199 | L17 | marginal tax rate | the rate at which the tax is paid on each additional unit of taxable income |
| 200 | L2 | market failure | the inability of the market to deliver the most desired economic outcomes |
| 201 | L3 | mass production | manufacturing of identical articles in very large quantities by mechanical processes |
| 202 | L24 | medium of exchange | any article which is widely used because it forms a convenient and commonly acceptable means of payment when goods are exchanged, bought and sold |
| 203 | L7 | merger | joining together of two or more companies |
| 204 | L9 | merit good | a good that society thinks people should consume or receive, no matter what their incomes are |
| 205 | L2 | microeconomics | the part of economics that examines individual decisions and particular markets |
| 206 | L17 | minimum wage | the legal minimum that may be paid for one hour of labour |
| 207 | L9 | mixed economy | an economic system where both the government and private sector interact in solving economic problems |
| 208 | L23 | moderate inflation | single-digit inflation |
| 209 | L25 | monetary aggregates | alternative measures of the money supply which differ from each other according to which types of deposits are included |
210 - 239 | |||
| 210 | L25 | monetary base | cash in circulation with the public plus banks |
| 211 | L28 | monetary policy | the control, by the government, of a country's currency and its system for lending and borrowing money, esp. through the supply of money |
| 212 | L21 | money laundering | making illegally gained income look as if it came from a legal business |
| 213 | L25 | money multiplier | the ratio of potential change in the money supply to an initial change in excess reserves |
| 214 | L24 | money stock | the total of all the money held by all persons and organisations in a country at a particular time / the whole of a county's existing stock (or supply) of money to hold as a liquid asset |
| 215 | L24 | money supply | the total of all the money held by all persons and organisations in a country at a particular time / the whole of a county's existing stock (or supply) of money to hold as a liquid asset |
| 216 | L7 | monopolistic competition | a market in which many firms produce similar goods or services but each maintains some independent control of its own price |
| 217 | L7 | monopoly | the situation in a market in which there is only one supplier of a commodity and he therefore faces no competition |
| 218 | L2 | mortgage | an agreement to borrow money, esp. So as to buy a house, and pay interest on it to the lender over a period of years |
| 219 | L25 | multiple expansion of bank deposits | the ability of the banking systém to lend (create money) by a multiple of its excess reserves |
| 220 | L25 | narrow money | financial assets which perform the functions of money when a fairly narrow definition of liquidity is applied |
| 221 | L7 | natural monopoly | a monopoly resulting from the existence of large economies of scale in an industry where technical factors make the efficient existence of more than one producer impossible |
| 222 | L25 | near money | an asset which can be used almost as if it were money although it is not |
| 223 | L16 | net income | the excess income of a firm after everything has been paid for |
| 224 | L16 | net profit | the excess income of a firm after everything has been paid for |
| 225 | L16 | net worth | the difference between total assets and total liabilities (the amount of money accruing to owners of a firm in the event of liquidation) |
| 226 | L17 | nominal income | the amount of money income received in a given time period, measured in current prices |
| 227 | L21 | non-durable goods | items that last for less than three years or that are used up immediately |
| 228 | L10 | normal good | a good whose consumption increases with an increase in income |
| 229 | L15 | normal profit | the usual return for enterprise in alternative businesses needed to persuade an entrepreneur to continue production |
| 230 | L2 | normative economics | economics that offers prescriptions for action based on personal value judgements |
| 231 | L27 | notice | information or a warning given in advance about something that is going to happen in the future |
| 232 | L7 | oligopoly | a market which is dominated by a few large suppliers |
| 233 | L28 | open-market operations | a method used by central banks to control the level of interest rates by influencing conditions in the money market by buying and selling bonds and securities in the open market, thus reducing or increasing the funds available in the market |
| 234 | L16 | operating expenses | costs applicable to general, administrative, and selling activities of a business |
| 235 | L16 | operating profit | revenue minus cost of sales |
| 236 | L1 | opportunity cost | the cost of a choice stated in terms of the value of other goods or services that must be given up |
| 237 | L27 | overdraft | a loan made by a bank to a customer so s/he may withdraw more money than is actually in the bank account |
| 238 | L14 | partnership | an unincorporated (unregistered) association of two or more persons carrying on business together for the purpose of making a profit |
| 239 | L27 | pass book | a book that lists all payments into and withdrawals from a savings bank account |
240 - 269 | |||
| 240 | L20 | peak | the highest point of the business cycle |
| 241 | L26 | pension fund | money collected from employers and employees, or by the State, and invested to provide future pensions |
| 242 | L2 | positive economics | economics that seeks objective or scientific explanations of the workings of an economy |
| 243 | L20 | potential growth | the increase in the amount of goods and services the whole economy can produce |
| 244 | L13 | price elasticity of demand | the percentage change in quantity demanded divided by the percentage change in price |
| 245 | L3 | primary production | industries producing raw materials, either by extracting them from the ground or by growing them |
| 246 | L14 | private limited company | a limited company which must not invite the public to subscribe for its shares or debentures and does not allow its members to transfer their shares without the agreement of the other shareholders |
| 247 | L9 | privatisation | the selling of a state-owned industry or organization into private ownership |
| 248 | L21 | producer price index | index of the cost of a given basket of goods priced in wholesale markets, including raw materials, semi-finished goods and finished goods at the early stage of the distribution system |
| 249 | L5 | product markets | the collection of markets in which firms sell final goods and services to customers |
| 250 | L3 | production | the act or process of producing, manufacturing / the entire amount produced |
| 251 | L4 | production possibility frontier | a curve showing the combinations of maximum output of two goods that can be produced by fully utilizing the limited resources available and the best known technology |
| 252 | L4 | profit | the difference between total revenue and total cost |
| 253 | L17 | progressive tax | a tax system in which tax rates rise as incomes rise |
| 254 | L14 | public corporation | in Britain, a state-owned organisation that manages a nationalised industry or a public service / in the USA any corporation (company) in which the government owns a controlling interest |
| 255 | L8 | public good | a good that is available for the society as a whole and not just individual members |
| 256 | L14 | public limited company | a limited company which can offer its shares and debentures to the public, there is normally no limit to the right of its members to transfer their shares to other persons |
| 257 | L7 | pure (perfect) competition | a market model that assumes a large number of buyers and sellers, a homogeneous product, complete freedom of movement of factors of production from one industry to another, and full knowledge of prices and technology |
| 258 | L15 | pure profit | the difference between total revenue and economic costs for a firm (also called pure profit) |
| 259 | L10 | quantity demanded | the quantity of a good buyers wish to buy at a particular price |
| 260 | L11 | quantity supplied | the quantity of a good sellers wish to sell at a particular price |
| 261 | L7 | quota | a limit placed by the government on the amount of imports or exports of a particular article or commodity |
| 262 | L19 | quota | limit on the quantities or total value of specific items that maybe imported |
| 263 | L2 | rate of inflation | the percentage increase in the general price level over a certain period of time |
| 264 | L1 | raw materials | things which are the starting point for manufacturing processes |
| 265 | L6 | real estate market | the market for land and buildings |
| 266 | L17 | real income | income in constant prices, nominal income adjusted for inflation |
| 267 | L20 | recession | a contraction persisting for more than six months |
| 268 | L20 | recovery | a phase of the business cycle during which a stagnant economy comes out of the trough |
| 269 | L14 | registrar of companies | in Britain, a government official who is responsible for the registration of limited companies and for keeping detailed records about them. He issues a Certificate of Incorporation to each new company as an acknowledgement that all necessary formalities have been properly completed (commercial register) |
270 - 299 | |||
| 270 | L26 | remittance | the act of sending or transferring money / the amount sent |
| 271 | L5 | rent | money paid for the use of land considered as a factor of production / the sum of money received by the owner of property in land and buildings as a periodic payment from an occupier or tenant |
| 272 | L26 | required reserves | the amount of reserved that banks are required by law to keep, as a fraction of demand deposits |
| 273 | L28 | reserve ratio | the relation between a bank's total cash reserves of notes, coins, etc. and its total deposit liabilities |
| 274 | L26 | reserves | assets kept by a bank to be able to provide cash in exchange for deposit balances when needed |
| 275 | L1 | resource | a thing provided by nature or accumulated by man that can be used as means of satisfying wants |
| 276 | L5 | resource allocation | the choosing of the particular use to which a scarce resource is put |
| 277 | L5 | resource markets | the collection of markets in which households sell the services of their productive resources to business to be used in production (also called market for factors of production) |
| 278 | L9 | restitution | the act of returning of items to their proper owners |
| 279 | L21 | retail price index | index expressing the average of the prices of various goods and services commonly purchased by families in urban areas |
| 280 | L5 | retail trade | selling goods directly to the general public |
| 281 | L8 | retirement pension | a sum of money paid regularly by the state to people above a certain age who have stopped working |
| 282 | L1 | revenue | money received by a firm from the sale of goods and services |
| 283 | L23 | runaway inflation | inflation of four or more digits |
| 284 | L5 | salary | a fixed regular (usually monthly) payment to employees doing other than manual or mechanical work |
| 285 | L16 | sales | income from trading activities |
| 286 | L2 | savings | a part of disposable income that is not spent on current consumption |
| 287 | L26 | savings bank | a financial institution that specializes in providing services such as savings accounts as opposed to general banking services |
| 288 | L1 | scarce resource | a resource whose availability cannot satisfy all desired uses of those resources |
| 289 | L1 | scarcity | lack of available resources to satisfy all desired uses of those resources |
| 290 | L3 | secondary production | the production of goods from raw materials |
| 291 | L6 | securities market | a market where shares, bonds and other kinds of securities are traded |
| 292 | L26 | security | an investment or item of financial value, esp. a stock, share or debenture, that can be bought and sold on a stock exchange |
| 293 | L3 | semi-finished good | a good that is only partly made and needs further processing before final consumption |
| 294 | L5 | share | (UK) one of a number of equal portions in the nominal capital of a company entitling the owner to a proportion of distributed profits |
| 295 | L4 | shift | (… of PPF) movement of the entire curve outward or inward |
| 296 | L15 | short run | the time period that is not long enough to permit changes in some of the important economic conditions facing a decision maker |
| 297 | L9 | slump | a period of sudden decline in economic activity, accompanied by a fall in prices |
| 298 | L24 | smart card | a small plastic card with a memory chip |
| 299 | L8 | social insurance | a system of insurance run by the government, into which workers and employers make regular payments, and which provides money for people who are unemployed, old etc. |
300 - 329 | |||
| 300 | L8 | social security benefit | (UK) a government payment for people who are sick, unemployed, disabled, retired, or in any other way in need |
| 301 | L14 | sole proprietor | a form of business organisation where the entrepreneur owns his own business, manages its affairs, provides the capital and bears all the risks |
| 302 | L14 | sole trader | a form of business organisation where the entrepreneur owns his own business, manages its affairs, provides the capital and bears all the risks |
| 303 | L19 | specific tariff | a certain amount of tax imposed on each unit of the imported product |
| 304 | L23 | stagflation | combination of stagnation and inflation, i.e. existence of high unemployment and recession and high rates of inflation at the same time |
| 305 | L24 | standard of deferred payments | the fact that payments to be made in the future are usually specified in terms of money |
| 306 | L27 | standing order | a customer's instruction to a bank to pay a certain amount to another person or organization at regular intervals |
| 307 | L5 | stock | "(US) see ""share"" / goods stored in a warehouse or shop for future sale" |
| 308 | L6 | stock exchange | an organized market where securities are brought and sold under fixed rules |
| 309 | L16 | stockholder´s equity | the difference between total assets and total liabilities (the amount of money accruing to owners of a firm in the event of liquidation) |
| 310 | L24 | store of value | the ability to store wealth or purchasing power for future use |
| 311 | L22 | structural unemployment | unemployment resulting from changes in the economy itself |
| 312 | L3 | subsidy | money paid by a government to producers of certain goods, to help them provide low-priced goods without loss to themselves |
| 313 | L10 | substitute | a good that can be used in place of another |
| 314 | L15 | sunk costs | expenses already incurred or unavoidable in the short run, such costs cannot affect decisions |
| 315 | L5 | supply | the number of items that sellers offer for sale at every price at a particular time and place |
| 316 | L11 | supply | the amount of a good sellers wish to sell at each conceivable price |
| 317 | L8 | tariff | a tax that must be paid when particular goods are imported into a country |
| 318 | L19 | tariff | a special tax imposed on imported goods |
| 319 | L8 | tax | a sum of money that government takes from people's incomes, company profits, the sale of goods, etc., to be used for public spending |
| 320 | L17 | tax rate | the percentage paid in tax |
| 321 | L8 | tax revenue | an amount of money collected by the government through taxation |
| 322 | L3 | tertiary production | an industry that is not concerned with manufactured goods, but provides a service |
| 323 | L15 | total cost | the sum of all fixed and variable costs |
| 324 | L15 | total revenue | the total amount received by a firm |
| 325 | L18 | trade deficit | an unfavourable, negative balance of trade, that is the excess of imports of goods and services over the exports of goods and services |
| 326 | L18 | trade surplus | a favourable, positive balance of trade, that is the excess of exports of goods and services over the imports of goods and services |
| 327 | L8 | trade union | an organization of employees working in the same industry or area representing its members in discussion and negotiations with management and government |
| 328 | L17 | trade union | an organisation of workers in a particular industry, which represents them and aims to improve their pay and working conditions |
| 329 | L1 | trade-off | a necessity to give up one thing in order to obtain something ales (balance between opposing things, compromise) |
330 - 359 | |||
| 330 | L25 | transactions demand (for money) | the desire to hold money for the purpose of making purchases or expenditures in the near future |
| 331 | L8 | transfer payment | a payment made by the government to individuals without requiring any goods or services in return |
| 332 | L9 | transition economy | an economy which is changing from command to free market economy |
| 333 | L20 | trough | the bottom of the business cycle, representing the lowest point in economic activity |
| 334 | L12 | unattainable point | point that represents such a combination we cannot obtain because of the limited amount of money |
| 335 | L4 | unattainable points | points lying outside (above) the production possibility frontier, representing combinations of outputs that cannot be obtained, given available resources and technology |
| 336 | L21 | underground economy | production and distribution of illegal goods and services and non-reporting of legal economic activities |
| 337 | L8 | unemployment | the inability of participants of the labour force to find jobs (lack of paid work) |
| 338 | L8 | unemployment benefit | money paid by the government to people who are unemployed |
| 339 | L22 | unemployment rate | the percentage of people in the labour force who cannot find a job but are looking for it |
| 340 | L13 | unit elastic demand | the percentage change in quantity demanded equals the percentage change in price |
| 341 | L24 | unit of account | a measure of value and a standard of comparing values of different goods and services |
| 342 | L14 | unlimited liability | the fact that if the business goes bankrupt, the owner is personally liable for the debts of the firm |
| 343 | L21 | value added | increase in the value of goods as a result of the production process |
| 344 | L2 | value judgement | a judgement about the quality of something, based on opinion rather than facts |
| 345 | L15 | variable costs | expenses that vary with changes in the level of a firm's output |
| 346 | L26 | vault | a place where valuable things are stored |
| 347 | L5 | wage | money paid for manual work, based on hourly, daily, weekly or piece-work rate |
| 348 | L17 | wage rate | the amount of money a worker gets for each unit (usually an hour) of work |
| 349 | L8 | welfare payments | (US) a government payment for people who are sick, unemployed, disabled, retired, or in any other way in need |
| 350 | L5 | wholesale trade | buying goods in large quantities directly from manufacturers and selling them to retailers |
| 351 | L22 | workforce | all people of working age, both employed and unemployed |